European shares fell in early trade on Thursday, led lower by banks and commodities stocks, as investors awaited euro zone industrial production numbers and U.S. weekly jobless figures.
By 0934 GMT, the FTSEurofirst 300 index of top European shares was down 0.4 percent at 1,009.82 points after touching a three-week high in the previous session.
"I suspect investors will be looking at the industrial production figures today which will probably show a fairly split picture between core Europe and the rest. I think that is going to weigh on what is happening," said Justin Urquhart Stewart, director at Seven Investment Management.
"U.S. jobless figures are going to be crucial to the level of confidence coming through. I suspect it is still going to show a little weakness but not quite as bad as expected."
Banks took the most points off the index. Societe Generale, HSBC and BNP Paribas were down 0.5 to 2 percent.
Energy stocks featured among the declines as crude slipped 0.5 percent. BG Group, BP and Total were down 0.5 to 0.9 percent.
Mining stocks retreated after early gains as copper prices fell 1 percent. BHP Billiton, Rio Tinto and Xstrata were down 0.8 to 2 percent.
Utilities were lower. France's GDF Suez and Germany's RWE were down 0.8 percent and 0.7 percent after they both reported earnings for the first nine months of the year that were slightly below market expectations.
AB INBEV FALLS
Shares in AB InBev dropped 2 percent after mixed third-quarter results, with lower revenue than expected but higher core profit and guidance described as "solid" by one analyst.
Telecom groups featured among the biggest movers. TeliaSonera gained 5.2 percent after it said it had agreed with Russia's Alfa Group to combine holdings in mobile operators MegaFon in Russia and Turkcell in Turkey.
Britain's BT Group rose 4.4 percent after it increased its revenue and dividend forecast for the full year after stringent cost cuts helped the former telecoms monopoly to beat second quarter core earnings expectations.
"The boost in full-year 2010 guidance across many key fronts — top-line performance, cost-control performance and free cash flow generation — will play strongly in the market and boost sentiment towards BT," Daiwa analyst Michael Kovacocy said.
At 1000 GMT, investors will watch euro zone industrial production for September, while at 1330 is the release of U.S. weekly jobless claims.
Across Europe, the FTSE 100 index was down 0.2 percent, Germany's DAX fell 0.5 percent and France's CAC 40 was 0.5 percent lower.
